German machine tool orders almost flat in June: VDMA

1st August 2011, Comments 0 comments

Orders for German machine tools eased in June, figures released by sector federation VDMA showed Monday, a sign of slower activity in Europe's biggest economy.

Overall orders for machines used widely to produce other goods were just two percent higher than in June 2010, the federation said, with domestic orders plunging by 14 percent while foreign demand gained 10 percent.

The figures were part of a wider set of data that represented "the first signs that the investment dynamic in Germany and its eurozone partners is not as strong," VDMA economist Olaf Wortmann was quoted by a statement as saying.

In the three months from April through June, machine tool orders gained 14 percent overall, following a leap of 32 percent in the first quarter of 2011 that benefitted from a comparison with a weak first quarter of 2010.

German machine tools are a key product for the world's second biggest exporter after China, and serve as a key leading indicator of economic activity.

© 2011 AFP

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